A firm is said to have monopoly power
a. it if produces the quantity at which MR = MC.
b. if it produces the quantity at which P = MC.
c. when it can influence the price of its product
d. if it tries to monopolize a market
e. if it is the only firm that hires a particular kind of labor
C
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The use of vouchers for education
A) decreases the demand for education and increases the equilibrium quantity. B) increases the demand for education and increases the equilibrium quantity. C) increases the deadweight loss for those who can't afford schooling. D) decreases the quantity provided to the efficient level. E) decreases the demand for education and decreases the equilibrium quantity.
If the manager of a nonprofit enterprise sets prices below market clearing levels, she
A) increases the net revenue of the enterprise. B) provides herself with control over a valuable good. C) reduces her personal popularity. D) produces all of the above consequences.
The central problem of economics is the
A) Distribution of goods and services to those in need. B) Human wants exceeding the availability of resources. C) Inefficiency of government operations. D) Labor unemployment.
If total revenues decline when the market clearing price increases, then we know that
A) demand is inelastic. B) demand is elastic. C) demand is unit-elastic. D) demand has zero elasticity.